European Parliament Passes a Resolution to Support Distributed Ledger Technologies And Blockchains

On Wednesday, Members of the European Parliament passed a resolution by the Industry, Research and Energy Committee about the blockchain technology that contains many interesting details and insights that will no doubt be good news to blockchain and crypto followers.

The move comes few days after various European crypto bodies like Etoro called for the speedy passing of laws and regulations that will govern the industry.

During the voting process, the resolution received the backing of 52 members, with 1 against and 6 abstentions. 56 were in favour of cryptocurrencies while 3 voted against. Everybody was in favour of ICOs while a proposal for an observatory body was adopted by everybody.

Blockchains as Disruptive Technology

The resolution proposed by a pro-blockchain and crypto enthusiast member, Eva Kaili, seeks to recognize the role blockchain can play in enhancing innovation in Europe and around the world. The passage of the resolution will open doors for credible and binding laws that will govern the hitherto largely ungoverned industry.

During the deliberations, Kaili said that it was an important moment because this was the first time a big institution such as a Parliament was discussing the regulatory framework requirements for distributed ledger technologies and blockchain. The legislator argued that blockchains were capable of building a system architecture that would be able to improve on existing business models and design a new value-chain.

She stressed that distributed ledgers were technologies with similar characteristics. She explained that the main goal of the resolution was to highlight that distributed ledger technologies (DLTs) were not confined to blockchain and Bitcoin alone. She suggested that the use of DLTs should be explored in several crucial sectors such as artificial intelligence (AI), FinTech, healthcare and the energy sector. She also suggested exploring its uses in the government sector.

Blockchains are able to act as efficient or disruptive technologies

From a regulatory point of view, the legislator suggested a balanced innovation-friendly approach. She explained to the house that it was not the technology that needed to be regulated, but the uses per sector.

Another notable blockchain enthusiast in the parliament is Henna Virkkunen, who expressed her gratitude for the resolution on her Twitter account, calling it a positive step. The legislator had previously argued that DLT was still evolving and she agreed that the Parliament’s approach should be technology-neutral. She has also asked for Europe to become as innovatio- friendly as possible, while still being aware of the risks. Virkkunen explained the benefits of Initial Coin Offerings (ICOs):

Initial Coin Offerings (ICOs) have a strong potential in funding innovation and accelerate technology transfer; ICOs are a distinct asset class with strong potential; Calls on the Commission to propose a framework for ICOs.